Mastercard (NYSE:MA) Stock Price Up 0.7% – Time to Buy?

Mastercard Incorporated (NYSE:MA)’s stock price shot up 0.7% on Wednesday . The stock traded as high as $516.28 and last traded at $515.04. 428,347 shares traded hands during mid-day trading, a decline of 78% from the average session volume of 1,991,577 shares. The stock had previously closed at $511.40.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on MA. William Blair restated an “outperform” rating on shares of Mastercard in a research report on Monday, November 25th. Jefferies Financial Group lifted their price objective on shares of Mastercard from $590.00 to $610.00 and gave the stock a “buy” rating in a report on Monday, December 9th. Mizuho lifted their price target on Mastercard from $496.00 to $532.00 and gave the stock an “outperform” rating in a research note on Friday, November 1st. Morgan Stanley raised their price objective on Mastercard from $564.00 to $654.00 and gave the company an “overweight” rating in a report on Wednesday, December 18th. Finally, Bank of America upped their target price on Mastercard from $480.00 to $509.00 and gave the stock a “neutral” rating in a research note on Tuesday, September 17th. Three research analysts have rated the stock with a hold rating, twenty-three have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, Mastercard presently has a consensus rating of “Moderate Buy” and an average price target of $562.76.

Mastercard Stock Performance

The company has a debt-to-equity ratio of 2.36, a quick ratio of 1.29 and a current ratio of 1.29. The business’s 50-day moving average is $523.76 and its 200-day moving average is $491.10. The company has a market capitalization of $472.53 billion, a PE ratio of 38.94, a PEG ratio of 2.36 and a beta of 1.10.

Mastercard (NYSE:MA) last issued its quarterly earnings results on Thursday, October 31st. The credit services provider reported $3.89 EPS for the quarter, topping analysts’ consensus estimates of $3.73 by $0.16. Mastercard had a return on equity of 178.27% and a net margin of 45.26%. The firm had revenue of $7.37 billion for the quarter, compared to analysts’ expectations of $7.27 billion. During the same period in the previous year, the firm posted $3.39 EPS. The business’s revenue for the quarter was up 12.8% compared to the same quarter last year. On average, research analysts anticipate that Mastercard Incorporated will post 14.47 earnings per share for the current year.

Mastercard Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, February 7th. Stockholders of record on Thursday, January 9th will be given a $0.76 dividend. This represents a $3.04 annualized dividend and a dividend yield of 0.59%. The ex-dividend date of this dividend is Friday, January 10th. This is a positive change from Mastercard’s previous quarterly dividend of $0.66. Mastercard’s payout ratio is currently 23.00%.

Mastercard announced that its Board of Directors has approved a stock buyback plan on Tuesday, December 17th that permits the company to buyback $12.00 billion in outstanding shares. This buyback authorization permits the credit services provider to purchase up to 2.5% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s board believes its stock is undervalued.

Institutional Investors Weigh In On Mastercard

Institutional investors and hedge funds have recently made changes to their positions in the company. Strategic Financial Concepts LLC lifted its stake in Mastercard by 12,522.2% during the 2nd quarter. Strategic Financial Concepts LLC now owns 55,790 shares of the credit services provider’s stock valued at $246,000 after acquiring an additional 55,348 shares during the period. Oak Thistle LLC purchased a new stake in Mastercard in the second quarter worth approximately $277,000. LGT Fund Management Co Ltd. grew its position in Mastercard by 41.7% in the 2nd quarter. LGT Fund Management Co Ltd. now owns 16,071 shares of the credit services provider’s stock worth $7,090,000 after purchasing an additional 4,733 shares during the period. Royal London Asset Management Ltd. lifted its holdings in shares of Mastercard by 1.9% during the 2nd quarter. Royal London Asset Management Ltd. now owns 386,840 shares of the credit services provider’s stock valued at $170,658,000 after buying an additional 7,262 shares during the period. Finally, Sachetta LLC lifted its holdings in shares of Mastercard by 28.9% during the 2nd quarter. Sachetta LLC now owns 254 shares of the credit services provider’s stock valued at $114,000 after buying an additional 57 shares during the period. Institutional investors own 97.28% of the company’s stock.

Mastercard Company Profile

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers integrated products and value-added services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; and commercial credit, debit, and prepaid payment products and solutions.